Will lower-emission concrete be the standard within 5 years?

A recent survey explored the market demand and outlook for lower emission concrete and steel. With many respondents ready to buy lower-emission concrete now, we take a look at the key barriers to adopting lower emission concrete and the policies that could help accelerate production and demand.

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Jointly prepared by Ramboll and Climate Group, the survey and resulting report examined whether major consumers of lower emission concrete and steel are willing to pay a price premium for them. The installation of carbon capture at cement plants is a major investment, which more than doubles the cost of making cement. However, the survey results show that many respondents are ready to buy lower-emission concrete now, which would cover part of this investment. Focusing on the real estate, infrastructure, manufacturing, and energy sectors, 40% of respondents say that they are willing to pay a premium for CO2 reductions exceeding 25%, and 49% for CO2 reductions exceeding 50%. The survey highlights key barriers to adopting lower emission steel and concrete and the policies that could help accelerate and incentivise production and demand.

For the purpose of this article, we focus on concrete with cement constituting its major cost and carbon footprint.

Understanding the challenge

Concrete plays a vital role in modern industry, but its production generates 2.3 billion tonnes of CO2 annually, accounting for 7% of global emissions. The supply chain is fragmented, involving many different and often local players from raw material suppliers to manufacturers. Reducing emissions requires a coordinated effort involving the whole value chain: producers can use alternative raw materials, engineers can reduce cement usage in mixes, and designers can enhance concrete efficiency. Since the current cement production has 60% of its emissions coming from process emissions which is unavoidable, Carbon Capture, Utilisation & Storage (CCUS) is critical in mitigating these emissions, enabling concrete producers to comply with strict regulations, meet climate targets, and win sustainability savvy customers.

A growing need to decarbonise concrete

The decarbonisation of concrete is an essential part in achieving net-zero commitments and transitioning to a low-carbon economy for future generations. Although the market for lower-emission concrete is less mature, lacking transparency, and strong connections between key stakeholders, transitioning is possible, though complex. Securing renewable electricity is essential in the move away from coal. Collaboration across industries and alongside investment and policy support is critical to advancing lower-emission materials and achieving net-zero goals. Willingness to pay comes with willingness to invest, innovate, and legislate in ways that accelerate and scale action for a sustainable future.

"The 2024 survey shows that many respondents are ready to buy lower-emission concrete now. 40% of respondents say that they are willing to pay a premium for CO2 reductions exceeding 25%, and 49% for CO2 reductions exceeding 50%."

Anna Ekdahl

Business Development Manager

Conclusion #1 Organisations are ready to buy lower emission concrete – now!

The concrete sector is in flux, with organisations increasingly committing to decarbonisation and aiming for net-zero by 2050. The 2024 survey shows that many respondents are ready to buy lower-emission concrete now. 40% of respondents say that they are willing to pay a premium for CO2 reductions exceeding 25%, and 49% for CO2 reductions exceeding 50%. However, 10-20% are not willing to pay any premium, and a third of respondents are uncertain, revealing knowledge gaps about lower-emission materials. 56% of respondents confirm that lower-emission concrete is part of their carbon reduction strategy for addressing scope 3 emissions. Despite this, there is a gap between the strategic importance placed on decarbonisation and the actual willingness to pay for lower-emission materials, suggesting some companies may expect these materials at no extra cost.

Conclusion #2: The market is accelerating, yet fundamental barriers still exist

While the willingness to pay varies across sectors and geographies, the interest in exploring lower emission materials is accelerating and sends the signal that organisations are increasingly ready to act. Compared to last year, 52% of respondents reported a greater willingness to explore lower-emission materials, with only 3% indicating a decline.

The survey highlights the most significant barriers that need to be overcome in the coming years. Not surprisingly, cost is considered the biggest barrier with 84% of respondents indicating that they see this as key to holding back large-scale uptake. Other significant barriers include industry conservatism (indicated by 37% of respondents), lack of knowledge (33%), quality and credibility of data from suppliers (29%), and concerns about quality of the lower emission materials (22%). The respondents suggested ways to overcome some of these barriers, such as leveraging buying power to help reduce costs, addressing knowledge gaps through technical training, strategic and financial analysis, and improving supplier negotiations. Initiatives like ConcreteZero are working to enhance data transparency and supply chain engagement to help accelerate decarbonisation efforts across the industry.

While some buyers are aiming for significant reductions (50-80%), many are targeting modest goals (10-20%), with 16% not pursuing reductions at all. This shows a need for greater ambition to meet global emission targets.

Conclusion #3: Business leaders everywhere are calling for change

Leadership seems to play a key role in driving the adoption of lower-emission materials like concrete as well as the expectations around the pace of market change. 55% of respondents indicated that top management is pushing for lower-emission materials, while 44% pointed to mid-level management, and 22% to employees on the ground. External pressures (41%), including customers (27%), and business partners (14%), also play a role. 45% of the respondents believe that lower-emission concrete will be standard within five years.

Conclusion #4: Governments must act quickly to help de-risk innovation

Government action is essential: policy and market forces need to be combined to support decarbonisation. Regulatory frameworks like the EU's Renewable Energy Directive II and the US Inflation Reduction Act are mentioned as catalysts for the green transition. However, decarbonisation also requires broader policies such as carbon pricing (50% of respondents), embodied carbon limits (43%), and clean energy policies (34%).

69% of respondents believe tax incentives, credits, and subsidies are essential to create a supportive environment for adopting lower-emission materials. An example is the €4 billion financing of the H2 Green Steel plant in Sweden, backed by a green credit guarantee from the Swedish National Debt Office.

Governments are considering tax reforms to encourage sustainable alternatives by taxing non-renewable materials and offering tax exemptions for renewable energy, helping align environmental and economic goals.

Key takeaways

The survey reveals a growing willingness to pay for lower-emission concrete, driven by support from top management, integration into decarbonisation strategies, and expectations of upcoming policies. Around half of respondents (40-57%, depending on CO2 reduction levels) are willing to pay a premium and 45% believe that lower-emission concrete will be standard within five years. However, barriers like cost, industry conservatism, and knowledge gaps hinder widespread adoption. The survey respondents did highlight significant barriers to mass scaling, such as cost, industry conservatism, and lack of knowledge, as well as the need for proactive policy support to accelerate scaling. While progress is underway, cross-sector collaboration and robust policies from all levels of government are crucial for decarbonising concrete by 2050. The call for action is urgent – change must happen now and at a faster pace and on a greater scale.

Get all the report insights

Download the report to get a full overview of buyers’ willingness to pay a price premium for lower emission steel and concrete. Learn also about the market outlook, legislative drivers, and organisational readiness for adopting lower emission materials.

Want to know more?

Paul Astle
Decarbonisation Lead
+44 7436 545367
Anna Ekdahl
Director, Energy Intensive Industries
+45 51 61 37 41

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